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By Baran Bulkat, J.D. · California Western School of Law. A "Chapter 20" bankruptcy isn't an actual bankruptcy type. It's an informal name for the practice of filing for Chapter 13 bankruptcy immediately after completing a Chapter 7 case.
Aug 15, 2023 · For some people, Chapter 20 bankruptcy is the best path to debt relief. But it isn’t for everyone. If you have non-exempt assets that you wish to protect, they will not survive the process. This is because the first step in a Chapter 20 bankruptcy is filing Chapter 7, and Chapter 7 bankruptcy involves selling off any non-exempt assets.
Chapter 20 bankruptcy is an informal term that refers to filing Chapter 13 bankruptcy immediately after filing Chapter 7 bankruptcy. This allows unsecured debt, such as credit card debt, to be discharged in Chapter 7 bankruptcy and then secured debt, such as a mortgage or car loan to be crammed down and restructured in Chapter 13 bankruptcy.
A Chapter 20 filing is nothing more than a Chapter 7 completed bankruptcy (with discharge of debts issued) followed by a second bankruptcy filing - a Chapter 13. The second bankruptcy is utilized for other legitimate bankruptcy options, to either to strip off or cram down subordinate liens or to pay out in full otherwise non-dischargeable debts.
Dec 16, 2021 · What is Chapter 20 Bankruptcy? Why Would I Want to File for Chapter 20 Bankruptcy? What are Some Pros and Cons of Filing for Chapter 7 Bankruptcy Only? What are Some Pros and Cons of Filing for Chapter 13 Bankruptcy Only? Is There a Rule Prohibiting Multiple Bankruptcies? Does Chapter 20 Abuse the System?
Apr 5, 2018 · Chapter 20 bankruptcy is generally the term for filing a Chapter 13 bankruptcy right after completing your Chapter 7 bankruptcy. Choosing this route can be helpful in a handful of ways.
“Chapter 20” occurs when a Chapter 13 is filed immediately after the completion of a Chapter 7 bankruptcy. For some courts, “complete” may mean that the Chapter 7 discharge has been granted, even if the case isn’t closed yet.
